Increased revenue from shows made at MediaCityUK helped ITV to an encouraging rise in revenue, its latest trading update has revealed.
Overall revenue grew by 6% to £1.66bn, up from £1.57bn last year, while ITV Studios increased its income by 11% to £555m.
Over 500 ITV staff are now based at the Orange Tower, including teams from CITV, The Jeremy Kyle Show, Granada Reports, factual, entertainment and drama.
It’s also home to Shiver, the factural arm of ITV Studios, which produces shows including Tonight, Countrywise, Paul O’Grady: For The Love of Dogs and Come Dine with Me.
The increase in revenue from ITV Studios can largely be put down to its recent acquisitions, which have included US production firms Thinkfactory Media and High Noon and the UK producer The Garden, maker of Channel 4 shows including 24 Hours in A&E.
Advertising revenue across all of ITV’s channels rose 1% to £1.08bn and was up 11% in the third quarter. The fourth quarter is set to be stronger as it takes into account the fifth series of Downton Abbey and the latest I’m a Celebrity series, so the broadcaster says it expects advertising revenues to rise 2% for the full year.
Chief executive Adam Crozier said: “We continue to make good progress with our strategy of growing and strengthening ITV both creatively and commercially, and all parts of the business are performing well. Total external revenues rose 6%, driven by strong growth in Online, Pay & Interactive and in ITV Studios.”
Crozier is targeting an equal split between advertising and production revenues to help protect it from advertising volatility, and the broadcaster has recently acquired US production firms Thinkfactory Media and High Noon and the UK producer The Garden, maker of Channel 4 shows including 24 Hours in A&E.
He added: “ITV is now a stronger and more balanced business and as we move into 2014 we will continue to see growth across the company. We expect good growth in ITV Studios, primarily driven by our recent acquisitions.
“The television advertising market is showing signs of improvement, which will benefit the core Broadcast business, and we expect to deliver double digit revenue growth in Online, Pay & Interactive.”